Italy’s central bank calls for framework to prevent stablecoin runs

Cointelegraph
Cointelegraph

29 Jun 2023 1:44 AM

The Bank of Italy is calling on regulators to hold stablecoin issuers and other centralized actors in the industry to the same “financial conduct standard” as traditional firms....

  • Italy's top banking authority is calling for a robust regulatory framework for stablecoins to prevent a "run" on stablecoins.
  • The central bank wants the same financial conduct standards to be applied to stablecoin issuers.
  • The rise of cryptocurrencies and unregulated environment has caused significant consumer harm.
  • Stablecoins' close connection to DeFi makes regulatory attention a priority.
  • The Italian banking authority highlights the instability of stablecoins, citing the collapse of TerraClassicUSD.
  • The industry needs to address the decentralization illusion and operate within regulated financial structures.
  • Not all crypto assets or activities need to be subjected to financial services regulation.
  • Italy's central bank calls for international cooperation to establish an international regulatory framework.

The article highlights the concerns of Italy's central bank regarding stablecoins and calls for a robust regulatory framework. It emphasizes the need for financial conduct standards, addressing consumer harm, and debunking the decentralization illusion. The sentiment is cautious and calls for international cooperation.

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You May Ask

What is the main concern of Italy's top banking authority regarding stablecoins?Why does the central bank want the same financial conduct standards for stablecoin issuers?What is the connection between stablecoins and DeFi?Why does the Italian banking authority believe stablecoins are not stable?What does the central bank suggest regarding the regulation of crypto assets and activities?

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